Current assets divided by current liabilities is known as the
A)profit margin.
B)current ratio.
C)working capital.
D)capital structure.

Question

Quizplus · Accepted Answer

The ratio of current assets to current liabilities is known as the current ratio. It's a measure of a company's liquidity and ability to meet short-term obligations. A current ratio of 1 or higher is generally considered good, indicating that a company has enough current assets to cover its current liabilities.

Current Assets Divided by Current Liabilities Is Known as the